Optimizing EOQ model for expiring items with stock, selling cost and lifetime dependent demand under inflation

• Published in: Opsearch 2023-03, Vol.60 (1), p.174-187
• Main Authors: Singh, Chaman, Ambedkar, Gurudatt Rao
• Format: Article
• Language: English
• Subjects: Application; Application Article; Business and Management; Management; Mathematics; Operations research; Operations Research/Decision Theory; Sensitivity analysis; Sustainable development
• ISSN: 0030-3887; 0975-0320
• DOI: 10.1007/s12597-022-00616-x

Now-a-days, ventures are confronting numerous difficulties to meet the objectives of sustainable development. The Client’s choices are changing at a quicker speed in view of new advances and the quickly changing general climate. It is seen that demand of the items is straightforwardly associated with the stock level however keeping a colossal stock reason for increment in holding cost and crumbling effect. It is a major test to sell the whole lot before its lapse with the goal that its impact on climate can be diminished. Deterioration and inflation have a significant effect on any model, thus cannot be ignored. This model consolidates the expiry date and weakening effect of green things and gives an ideal yield to acquire the most extreme benefit under inflationary conditions. The model is tackled mathematically to get the ideal cycle, which would expand the all-out benefit. The model illustrates around 2% increase in selling price, 13% increase in the total profit from 20% higher expiry time of the product and 4% increase in total profit from 20% less deterioration rate of the product. Sensitivity analysis strengthens the applicability of the model.